Obama Sued CitiBank To Force Them To Make Bad Loans (Flashback 1995)

This mess didn't happen overnight.

I know the lefties have a problem seeing long term or anything past tomorrow, but this is a problem that has been in the making for a while.

21 posted on 10/07/2008 1:27:02 PM PDT by FreeAtlanta (NOBAMA - it is for our future)

The impact is in the precedent.

22 posted on 10/07/2008 1:35:39 PM PDT by wtc911 ("How you gonna get back down that hill?")

“very big part of this is the over-extended second mortgage holders”

A VERY SMALL PART, actually...

The BIGGEST part of this is the MASSIVE inner-city mortgage frauds.

This is just ONE SCHEME, from ONE Mid-sized US City.

Now, multiply this by a hundred cities, many LARGER, like Detroit, and you just BEGIN to see how this started.

On Wednesday, the prosecutor’s office announced charges of welfare fraud and theft against six men. Investigators say they were involved in different mortgage cartels over the past three to seven years.

Mehran Valiyi, Brian Beach, Marcus Dewayne Ward and Omar Dillard were all involved with different schemes all with the same result: defrauding HUD out of $284,000 and facilitating $37 million in mortgage loans that investigators say the suspects never paid on. Two out-of-state residents, Patrick Ladarius and Preston Forte, were also charged.

Investigators say the suspects took out almost $38 million in mortgages under fake companies they created, buying 568 homes across the city and then re-selling them for an inflated price to investors. The suspects never paid the mortgages on the homes they bought, sending properties like the one at 917 North Parker into foreclosure, according to the report.

Investigators say the suspects also registered some of their properties as Section 8 so they could collect HUD money all while not paying the home’s mortgage. Soon the home was in foreclosure and unsuspecting renters were on the street.

“Then they file for bankruptcy to keep from having to pay the judgment on the foreclosure and its just a never ending circle,” said Barbara Crawford, Marion County prosecutor’s office.

Authorities credit the Targeting Violent Crime Initiative for establishing links between violent crime and mortgage fraud cartels, leading to the charges against these 6 suspects.

http://www.wthr.com/...
From WTHR-13 Indianapolis

23 posted on 10/07/2008 1:41:51 PM PDT by tcrlaf (SARAH PALIN-The American Everywoman (Yes, You Really CAN!))

But, you don’t get it.

EVERYTHING is Racist, now!

A Florida Sherriff saying Obama’s middle name, “HUSSEIN” is racist. Mentioning the origins of this financial meltdown is racist.

In fact, ANYTHING that may harm “THE ONE!” is racist, don’t you already know that??

24 posted on 10/07/2008 1:44:01 PM PDT by tcrlaf (SARAH PALIN-The American Everywoman (Yes, You Really CAN!))

This article, should be one of McCain’s talking points tonight.

25 posted on 10/07/2008 2:00:15 PM PDT by DGHoodini (Nor shall my sword sleep in my hand)

All part of the ACORD, Ayers, Soros, Obama, Alinsky, Pritzker et al strategy:

http://www.americanthinker.com/2008/09/barack_obama_and_the_strategy.html

26 posted on 10/07/2008 5:44:20 PM PDT by Frantzie

Need research to reveal the settlement....

27 posted on 10/08/2008 12:54:35 AM PDT by XHogPilot

So did Obama force the Illinois banks to “prey” on the poor of his state?

28 posted on 10/08/2008 12:56:39 AM PDT by XHogPilot

It took 4 years to settle the lawsuit. May 1998 was when they settled. Time frame is about right for a settlement highly favorable to plaintiffs. Circa 1998 is the same time frame for Boston area banks being forced to make very hight risk loans by the US Justice Dept.

29 posted on 10/08/2008 1:17:47 AM PDT by XHogPilot

To: Fred Nerks; Lazamataz; TigersEye; MeekOneGOP; floriduh voter; loboinok; snippy_about_it; ...

Ping.

[Want off my unreliable ping list? Please feel free to cuss me out. Want on my ping list? Just ‘ax’.]

30 posted on 10/08/2008 2:48:17 AM PDT by Arthur Wildfire! March (BO Change is BS Change. A little o Change to help Ayers and Raines.)